Thanks to
@DodgyMinors for the highlights of the Alan Kohler interview with Paul Anderson. ( And thanks to
@bedger too for many informative posts.) I tuned in and had a listen to the interview as well, and a few things stood out for me.
Paul Anderson said in the interview, "We have about $27 million in the bank, our annual budget is around $10 million per year. We have $2.5 million on average Research and Development rebate. We've got increasing revenues as a result of this Biohorizons relationship and so, as it currently stands, we burn about $6 million per year...."
What I found most encouraging about this statement was the emphasis by Orthocell's management on continuing to build a really strong foundation for future growth. ( We already have a good foundation of course with the creation of Striate and Remplir - both of which appear to be best in class and protected by a broad portfolio of patents.) But the emphasis on R&D expenditure is crucial to maintaining the lead and creating a really great future company. Money spent on developing Collagen Rope, for example, should see us staying at the forefront of the field and achieving much greater profits in the future.
Along with R&D is the focus on establishing advantageous business relationships. Paul Anderson also said in the interview that "the Bio Horizons deal was two-and-a-half years of strategic planning and market planning." No doubt a lesser deal could have been got sooner (but so what?) who is not happy with the deal that did eventuate? It it took us all by surprise that one!
Incidently, on the subject of deals, I think the greatest value in the Bio Horizons arrangement comes from the upfront payment of $21 million because it gives Orthocell a very strong position from which to negotiate any future deals - we don't have to go "cap in hand." Sooner or later I expect we will get announcements regarding other deals. Remplir is an obvious candidate. I would be amazed if things are not already in the works.
My overall impression from the interview is that Orthocell's management knows exactly what it is doing and is committed to establishing a great company.
Good luck fellow shareholders. Although none of the above is financial advice, for myself, I have no intention of selling my shares. In my many years of investing I have learnt to put a lot of money into the good ones and to be patient. It's paid off well!
(20min delay)